ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT TEST LATEST
COMPLETE EXAM QUESTIONS WITH DETAILED VERIFIED ANSWERS |100%
CORRECT ANSWERS|/ALREADY GRADED A
1.Which two criteria are required for obtaining venture capital funding? 1. Multiple business partners
2. A scalable business model
3.A profitable exit strategy
4.Brand new technology - ANSWER A scalable business model and A profitable exit strategy
2. The design thinking process is highly focused on using secondary research to develop solutions to
problems.
True or False - ANSWER False
3. Which two elements below of the sales process, goes after the sales pitch?
1. Prospect
2. Overcome objections
3. Follow-up
4. Approach - ANSWER Overcome objections and Follow-up
4. You need to start a customer loyalty program to reward and retain your current customers. Which two
types of programs should you select?
1.Points program
2.Coupon code
3.Annual sale
4.Referral program - ANSWER Points program and Referral program
5. You have a cleaning company. You raised $10,000 from investors to get started. After three months,
you have $7,450. What is your burn rate and current runway?
1. $850 and about nine months of expenses covered.
, 2. $850 and about twelve months pf expenses covered.
3. $1000 and about three months of expenses covered.
4. $1000 and about ten months of expenses covered - ANSWER $850 and about nine months of
expenses covered.
6. Who finds and invests resources to form the company and help it succeed?
1. CFO
2. Founder
3. CEO - ANSWER Founder
7.Which of the following is a type of intangible business property that is protected by law:
A. Acreage
B. Inventory
C. Trademark
D. Equipment - ANSWER 1. C
Trademark. A trademark is a symbol, design, or word used by a business to identify a good or service
and is registered with the government to prevent its use by others. A trademark is an example of
intangible business property. Federal law protects a business's intangible property from being used by
competitors. A business's inventory, acreage, and equipment are types of tangible property.
8. Basic torts relating to businesses often involve disputes concerning
A. emotional stress.
B. assaults.
C. defamation.
D. contracts. - ANSWER D
Contracts. Business torts are wrongful actions against a business that cause it harm in some way.
Disputes concerning contracts are often the basis for businesses suing individuals or other businesses.
Many businesses have contractual arrangements with employees or vendors. If these contracts are
broken, the business might be harmed and seek compensation through the legal system. Basic torts
,relating to businesses do not involve disputes concerning assaults, defamation, or emotional stress.
9. Which of the following is a characteristic of a business-format franchise:
A. The name of the business is chosen by the franchisee.
B. Products are bought directly from the supplier.
C. It is the least popular franchise arrangement.
D. Continuous assistance is provided by the franchisor. - ANSWER D
Continuous assistance is provided by the franchisor. A business-format franchise is a more complex and
more popular type of franchise arrangement than the product trade-name franchise. It involves a close,
continuous working relationship between the franchisor and the franchisee. Examples of the
businessformat franchise are McDonald's, Holiday Inn, and Jiffy Lube. Products and other materials
usually must
be purchased from the franchisor's list of approved vendors. The franchisee must operate under the
trade name of the franchisor.
10. Limited liability, indefinite length of life, ease of expansion, legal entity, and transfer of ownership are
considered advantages of a
A. sole proprietorship.
B. partnership.
C. trade union.
D. corporation. - ANSWER Corporation. Corporations are advantageous due to the separate legal body
that is created by a state
charter. The charter limits individual liability, allows for permanency of existence, ease in transferring
ownership, and a greater number of resources for financial growth. Both the sole proprietorship and
partnership have unlimited liability, definitive life spans, difficulty in raising capital, and are not separate
legal entities. A trade union is a group that represents people in similar occupational skill areas.
11. Channels of distribution benefit consumers by
A. increasing profits for businesses.
B. lowering the prices of all consumer products.
, C. raising the quality of all consumer products.
D. making a variety of products available to them. - ANSWER D
Making a variety of products available to them. Channels of distribution benefit consumers by making a
variety of products available to them. Without these channels, consumers could only buy products
directly from producers, which would be impractical. Channels may lower some but not all consumer
product prices. They may raise the quality of some but not all consumer products. Increased profits for
businesses is not a benefit for consumers.
12. For which of the following markets would producers use a short channel of distribution:
A. Local consumers
B. Generation X
C. Baby boomers
D. Senior citizens - ANSWER A
Local consumers. A short channel can be used when the potential customers are few and/or located
close together. The baby boomer, senior citizen, and Generation X markets have many potential
customers who are widely dispersed.
13. If a business considers where the consumers are and who they are before selecting a channel of
distribution, the business is considering the __________ factor.
A. human
B. promotion
C. market
D. sales - ANSWER . C
Market. Market factors deal with where the consumers are, who they are, the information they require,
and the size of their orders. Understanding the market is an important aspect of selecting the best
channel of distribution. For example, it is important for businesses to know that most consumers prefer
to
buy products from retailers. Promotion, human, and sales are not factors that businesses consider when
selecting a channel of distribution.
COMPLETE EXAM QUESTIONS WITH DETAILED VERIFIED ANSWERS |100%
CORRECT ANSWERS|/ALREADY GRADED A
1.Which two criteria are required for obtaining venture capital funding? 1. Multiple business partners
2. A scalable business model
3.A profitable exit strategy
4.Brand new technology - ANSWER A scalable business model and A profitable exit strategy
2. The design thinking process is highly focused on using secondary research to develop solutions to
problems.
True or False - ANSWER False
3. Which two elements below of the sales process, goes after the sales pitch?
1. Prospect
2. Overcome objections
3. Follow-up
4. Approach - ANSWER Overcome objections and Follow-up
4. You need to start a customer loyalty program to reward and retain your current customers. Which two
types of programs should you select?
1.Points program
2.Coupon code
3.Annual sale
4.Referral program - ANSWER Points program and Referral program
5. You have a cleaning company. You raised $10,000 from investors to get started. After three months,
you have $7,450. What is your burn rate and current runway?
1. $850 and about nine months of expenses covered.
, 2. $850 and about twelve months pf expenses covered.
3. $1000 and about three months of expenses covered.
4. $1000 and about ten months of expenses covered - ANSWER $850 and about nine months of
expenses covered.
6. Who finds and invests resources to form the company and help it succeed?
1. CFO
2. Founder
3. CEO - ANSWER Founder
7.Which of the following is a type of intangible business property that is protected by law:
A. Acreage
B. Inventory
C. Trademark
D. Equipment - ANSWER 1. C
Trademark. A trademark is a symbol, design, or word used by a business to identify a good or service
and is registered with the government to prevent its use by others. A trademark is an example of
intangible business property. Federal law protects a business's intangible property from being used by
competitors. A business's inventory, acreage, and equipment are types of tangible property.
8. Basic torts relating to businesses often involve disputes concerning
A. emotional stress.
B. assaults.
C. defamation.
D. contracts. - ANSWER D
Contracts. Business torts are wrongful actions against a business that cause it harm in some way.
Disputes concerning contracts are often the basis for businesses suing individuals or other businesses.
Many businesses have contractual arrangements with employees or vendors. If these contracts are
broken, the business might be harmed and seek compensation through the legal system. Basic torts
,relating to businesses do not involve disputes concerning assaults, defamation, or emotional stress.
9. Which of the following is a characteristic of a business-format franchise:
A. The name of the business is chosen by the franchisee.
B. Products are bought directly from the supplier.
C. It is the least popular franchise arrangement.
D. Continuous assistance is provided by the franchisor. - ANSWER D
Continuous assistance is provided by the franchisor. A business-format franchise is a more complex and
more popular type of franchise arrangement than the product trade-name franchise. It involves a close,
continuous working relationship between the franchisor and the franchisee. Examples of the
businessformat franchise are McDonald's, Holiday Inn, and Jiffy Lube. Products and other materials
usually must
be purchased from the franchisor's list of approved vendors. The franchisee must operate under the
trade name of the franchisor.
10. Limited liability, indefinite length of life, ease of expansion, legal entity, and transfer of ownership are
considered advantages of a
A. sole proprietorship.
B. partnership.
C. trade union.
D. corporation. - ANSWER Corporation. Corporations are advantageous due to the separate legal body
that is created by a state
charter. The charter limits individual liability, allows for permanency of existence, ease in transferring
ownership, and a greater number of resources for financial growth. Both the sole proprietorship and
partnership have unlimited liability, definitive life spans, difficulty in raising capital, and are not separate
legal entities. A trade union is a group that represents people in similar occupational skill areas.
11. Channels of distribution benefit consumers by
A. increasing profits for businesses.
B. lowering the prices of all consumer products.
, C. raising the quality of all consumer products.
D. making a variety of products available to them. - ANSWER D
Making a variety of products available to them. Channels of distribution benefit consumers by making a
variety of products available to them. Without these channels, consumers could only buy products
directly from producers, which would be impractical. Channels may lower some but not all consumer
product prices. They may raise the quality of some but not all consumer products. Increased profits for
businesses is not a benefit for consumers.
12. For which of the following markets would producers use a short channel of distribution:
A. Local consumers
B. Generation X
C. Baby boomers
D. Senior citizens - ANSWER A
Local consumers. A short channel can be used when the potential customers are few and/or located
close together. The baby boomer, senior citizen, and Generation X markets have many potential
customers who are widely dispersed.
13. If a business considers where the consumers are and who they are before selecting a channel of
distribution, the business is considering the __________ factor.
A. human
B. promotion
C. market
D. sales - ANSWER . C
Market. Market factors deal with where the consumers are, who they are, the information they require,
and the size of their orders. Understanding the market is an important aspect of selecting the best
channel of distribution. For example, it is important for businesses to know that most consumers prefer
to
buy products from retailers. Promotion, human, and sales are not factors that businesses consider when
selecting a channel of distribution.
